Cryptobank and Federal Reserve Confrontation Escalates: Wyoming Custodia Bank's Main Account Appeal Rejected

[Crypto World] Wyoming-licensed crypto bank Custodia Bank takes a step forward in the lawsuit—filing an application to all judges of the Tenth Circuit Court of Appeals, requesting a reconsideration of the Federal Reserve’s previous decision to deny its main account opening application.

The bank’s logic is clear: we have met all the requirements of the State Payment System Data Infrastructure (SPDI), and the Fed’s rejection is not based on technical or compliance issues but is a de facto denial of Wyoming’s legislative authority in banking innovation. The deeper issue is that this involves federal regulators’ discretionary power without clear legal basis—which could trigger constitutional discussions.

This lawsuit reflects a broader conflict: state governments want to promote financial innovation and crypto-friendly policies, while federal entities (especially gatekeepers like the Federal Reserve) hold substantial control over payment system access. Whether Wyoming’s attempt can break through this barrier may influence other states’ attitudes toward crypto financial innovation in the future.